Nebraska Crop Insurance Exam
Questions and answers | Latest 2024/25
Mutual - A ________ insurance company is owned by its policyholders.
ii ii ii ii ii ii ii ii ii ii ii ii
Reinsurance - If an insurance company wants to transfer all or part of the risk it has
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
accepted, it would buy which of the following types of insurance?
ii ii ii ii ii ii ii ii ii ii ii
Domestic Insurer - An insurer organized under the laws of this state, whether or not it is
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
admitted to do business in this state.
ii ii ii ii ii ii ii
Foreign Insurer - An insurer not organized under the laws of this state, but in one of the
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
other states or jurisdictions within the United States, whether or not it is admitted to do
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
business in the state or jurisdiction.
ii ii ii ii ii ii
Alien Insurer - An insurer organized under the laws of any jurisdiction outside of the
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
United States, whether or not it is admitted to do business in this state.
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
ii Underwriting - Which insurance company department accepts the insurance risk? ii ii ii ii ii ii ii ii ii ii ii
Producer - Which of the following individuals represents the insurance company when
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
selling an insurance policy?
ii ii ii ii
Express Authority - Authority that is written into the producer's contract. Example:
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
producer's binding authority if written in the contract
ii ii ii ii ii ii ii ii
Implied Authority - Authority the public assumes the producer has. Example: providing
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
quotes, completing applications and accepting premiums on behalf of the insurer.
ii ii ii ii ii ii ii ii ii ii ii
Apparent Authority - Authority created when the producer exceeds the authority
ii ii ii ii ii ii ii ii ii ii ii ii ii
expressed in the agency contract. Example: the producer's issuance of a binder when, in
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
fact, the producer has not been granted such authority.
ii ii ii ii ii ii ii ii ii
Moral Hazard - Type of Hazard -dishonest tendencies that increase the probability of a
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
loss; certain characteristics and behaviors of people. Most closely related to some form of
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
lying, cheating, or stealing.
ii ii ii ii
Morale Hazard - An attitude of indifference toward the risk of loss that increases the
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
probability of of a loss occurring. i.e driving too fast for conditions, not wearing a seatbelt.
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
Large group with dissimilar members - Each of the following must be included in an
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
insurable risk, except:
ii ii ii
1) Calculable chance of loss
ii ii ii ii
2)Excluded catastrophic perils ii ii
3)Large group of dissimilar members ii ii ii ii ii
, 4)Accidental losses ii
Indemnity - Which principle of insurance restores the insured to the same economic
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
condition that existed before the loss?
ii ii ii ii ii ii
1) Indemnity
ii
2) Insurability
ii
3) Adhesion
ii
4) Underwriting
ii
Indemnity - Each of the following is an element of a legal contract, except:
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
1) Consideration
ii
2) Legal Purpose
ii ii
3) Agreement
ii
4) Indemnity
ii
A statement that is guaranteed to be true - A warranty is defined as which of the following?
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
1) Intentional misrepresentations on the application
ii ii ii ii ii
2) Statement in the application that is guaranteed to be true
ii ii ii ii ii ii ii ii ii ii
3) A false statement in the application
ii ii ii ii ii ii
4) What a reasonable and prudent buyer can expect
ii ii ii ii ii ii ii ii
Paid Losses + Loss Reserves / total earned premium - Which of the following calculations
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
equals a company's loss ratio?
ii ii ii ii ii
1) All losses + expenses
ii ii ii ii
2) Paid losses + loss reserves / total earned premium
ii ii ii ii ii ii ii ii ii
3) Losses + total operating expenses / total written premium
ii ii ii ii ii ii ii ii ii
4) Paid losses + paid expenses / total earned premium
ii ii ii ii ii ii ii ii ii
Endorsement - Which of the following is attached to the policy to alter or add to the policy
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
provisions?
ii
1) Binder
ii
2) Endorsement
ii
3) Definitions
ii
4) Excess insurance
ii ii
Bailee - A person who takes possession of another person's property in order to repair it is
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
called?
ii
1) Assignee
ii
2) Bailer
ii
3) Subrogee
ii
4) Bailee
ii
Arbitration - If the insured does not agree with the insurer's decision regarding a claim,
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
what process helps decide the outcome?
ii ii ii ii ii ii
1) Insurance company conference
ii ii ii
2) Arbitration
ii
Questions and answers | Latest 2024/25
Mutual - A ________ insurance company is owned by its policyholders.
ii ii ii ii ii ii ii ii ii ii ii ii
Reinsurance - If an insurance company wants to transfer all or part of the risk it has
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
accepted, it would buy which of the following types of insurance?
ii ii ii ii ii ii ii ii ii ii ii
Domestic Insurer - An insurer organized under the laws of this state, whether or not it is
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
admitted to do business in this state.
ii ii ii ii ii ii ii
Foreign Insurer - An insurer not organized under the laws of this state, but in one of the
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
other states or jurisdictions within the United States, whether or not it is admitted to do
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
business in the state or jurisdiction.
ii ii ii ii ii ii
Alien Insurer - An insurer organized under the laws of any jurisdiction outside of the
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
United States, whether or not it is admitted to do business in this state.
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
ii Underwriting - Which insurance company department accepts the insurance risk? ii ii ii ii ii ii ii ii ii ii ii
Producer - Which of the following individuals represents the insurance company when
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
selling an insurance policy?
ii ii ii ii
Express Authority - Authority that is written into the producer's contract. Example:
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
producer's binding authority if written in the contract
ii ii ii ii ii ii ii ii
Implied Authority - Authority the public assumes the producer has. Example: providing
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
quotes, completing applications and accepting premiums on behalf of the insurer.
ii ii ii ii ii ii ii ii ii ii ii
Apparent Authority - Authority created when the producer exceeds the authority
ii ii ii ii ii ii ii ii ii ii ii ii ii
expressed in the agency contract. Example: the producer's issuance of a binder when, in
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
fact, the producer has not been granted such authority.
ii ii ii ii ii ii ii ii ii
Moral Hazard - Type of Hazard -dishonest tendencies that increase the probability of a
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
loss; certain characteristics and behaviors of people. Most closely related to some form of
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
lying, cheating, or stealing.
ii ii ii ii
Morale Hazard - An attitude of indifference toward the risk of loss that increases the
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
probability of of a loss occurring. i.e driving too fast for conditions, not wearing a seatbelt.
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
Large group with dissimilar members - Each of the following must be included in an
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
insurable risk, except:
ii ii ii
1) Calculable chance of loss
ii ii ii ii
2)Excluded catastrophic perils ii ii
3)Large group of dissimilar members ii ii ii ii ii
, 4)Accidental losses ii
Indemnity - Which principle of insurance restores the insured to the same economic
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
condition that existed before the loss?
ii ii ii ii ii ii
1) Indemnity
ii
2) Insurability
ii
3) Adhesion
ii
4) Underwriting
ii
Indemnity - Each of the following is an element of a legal contract, except:
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
1) Consideration
ii
2) Legal Purpose
ii ii
3) Agreement
ii
4) Indemnity
ii
A statement that is guaranteed to be true - A warranty is defined as which of the following?
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
1) Intentional misrepresentations on the application
ii ii ii ii ii
2) Statement in the application that is guaranteed to be true
ii ii ii ii ii ii ii ii ii ii
3) A false statement in the application
ii ii ii ii ii ii
4) What a reasonable and prudent buyer can expect
ii ii ii ii ii ii ii ii
Paid Losses + Loss Reserves / total earned premium - Which of the following calculations
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
equals a company's loss ratio?
ii ii ii ii ii
1) All losses + expenses
ii ii ii ii
2) Paid losses + loss reserves / total earned premium
ii ii ii ii ii ii ii ii ii
3) Losses + total operating expenses / total written premium
ii ii ii ii ii ii ii ii ii
4) Paid losses + paid expenses / total earned premium
ii ii ii ii ii ii ii ii ii
Endorsement - Which of the following is attached to the policy to alter or add to the policy
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
provisions?
ii
1) Binder
ii
2) Endorsement
ii
3) Definitions
ii
4) Excess insurance
ii ii
Bailee - A person who takes possession of another person's property in order to repair it is
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
called?
ii
1) Assignee
ii
2) Bailer
ii
3) Subrogee
ii
4) Bailee
ii
Arbitration - If the insured does not agree with the insurer's decision regarding a claim,
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
what process helps decide the outcome?
ii ii ii ii ii ii
1) Insurance company conference
ii ii ii
2) Arbitration
ii
